This Little Light of Mine...

... I'm gonna let it shine...

My Roth IRA started retracing today with the broader market, but S&P 500 still held onto the critical 1200 level. But for how long? For the trend on trend to continue, we have to receive confirmation that the US economy really is improving. This Wednesday, we'll get a glimpse of the latest unemployment claims figures and US trade balance. On Friday, we'll also get the University of Michigan Consumer Sentiment report. Recall that we had some positive NFP numbers last week, which left the bears in total exasperation as S&P 500 zoomed past the pre-Lehman level of 1200 once again and managed to hold for several days now. If we get positive numbers again this Wednesday and Friday, then we may see the bull flag formation on the S&P 500 3-year chart take full Bwahaha effect.

But will it happen? Or will we have to wait for a third test of the 1200 level to rip off the bandaid?

Either way, I'm not fully invested enough. I've had a Don't Buy Don't Sell Policy going on for a while now.

My SBA is less than half the size of my Roth IRA. I haven't done much with my Roth IRA since adding more C to it back in late September. I recently added a small lot in BAC to the SBA at $11.18, where I'm experiencing about a +12.7% paper profit in about two weeks. I need to do more, but I'm not fully convinced!

I shall study the Crown Prince C from afar and see if I should get ready to do the whole few thousand shares thing with C - even above $4. My preference is to wait for a break below $4, but we may not get there depending on this week's data. I'm also going to look for some other opportunities besides C, although from the risk:reward standpoint, it doesn't get much better than this. Yet, I don't want to go all out with C only to have the Crown Prince flop during this year's Santa Clause Rally. Last week, I discovered that it's very possible that real investors are behind the move up in C. If there's very little call and put interest at price levels above $5, then when the move happens, things can get pretty heavy. No one wants to buy, yet no one wants to sell. The options players have basically given up. This is market accumulation happening right before our eyes.

Oooh, almost forgot my report card:

+1.04% on the SBA
-1.02% on the Roth IRA (ouch!)